Afraid of stocks and hoarding cash, we have become risk-averse

1:46 PM,
Sep. 5, 2012

THINKSTOCK

Written by

Adam Shell
USA TODAY

Investing used to be about taking risk to make money. Then came the financial crisis four years ago and the Great Recession. Now it's more about playing it safe -- and not losing the money you already have. The "risk-off" trade, or dialing down risk in a major way, is the new "in thing."

Risk aversion is at unprecedented levels. Cash, which guarantees a return of zero percent is one of the new must-have investments. In contrast, investing in stocks -- despite the fact that the market has doubled in value since March 2009, is trading at ...

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Afraid of stocks and hoarding cash, we have become risk-averse

Americans' risk-taking DNA code has been short-circuited. Investing used to be about taking risk to make money. Then came the financial crisis four years ago and the Great Recession.